Rental inflation at 2.1% understates what most renters moving home are experiencing. Three-quarters of rental areas are growing faster than the national average because 25% fewer homes to rent than pre-pandemic levels is keeping rent inflation positive.
Sales are holding up despite fewer buyers in the market but pricing correctly remains essential for sellers in 2026. The key finding this month is that first-time buyers are spending more and not compromising on what they want to buy.
Sellers are finding buyers as fast as last year and buyer demand has rebounded since Easter. The UK market is proving surprisingly resilient to global uncertainty but confidence varies across the country with higher mortgage rates felt more keenly in the South.
There are fewer buyers in the market than a year ago, but those who remain are still getting deals done. Higher mortgage rates are adding caution, which means pricing to sell is more important than ever.
The rental market is moving back towards balance as supply improves and demand eases. For renters, you can expect more choice of homes and slower rent increases than in recent years.
The year has begun with renewed momentum in the housing market, supported by improving mortgage market conditions.
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